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The efficiency of any system or market structure cannot be judged by the equilibrium configuration of production with which it is associated. As change is unceasing, it is necessary to consider how different processes of coordination, of both competitive and complementary activities, affect the efficiency of adaptation. This chapter is concerned with how alternative modes of coordination affect the scale of the investments undertaken and, in this way, economic efficiency.

The efficiency of any system or market structure cannot be judged by the equilibrium configuration of production with which it is associated. As change is unceasing, it is necessary to consider how different processes of coordination, of both competitive and complementary activities, affect the efficiency of adaptation. This chapter is concerned with how alternative modes of coordination affect the scale of the investments undertaken and, in this way, economic efficiency.

Keywords: efficiency;
modes of adjustment;
optimum output;
scale economies;
the general state of confidence